Posted by Jonathan Keung > 2014-12-05 15:27 | Report Abuse

yes . it make sense to digest what he says in his thoughts

Posted by 8illionaire > 2014-12-05 15:35 | Report Abuse

lol. this safal is slow.... people read this long before they start.

Posted by limko1 > 2014-12-05 17:21 | Report Abuse

Lesson 3 is especially true! Although all the facts are before him, people will still choose to believe all the lies and bullshits, simply because they choose to believe what they want to believe rather than facts. And there are so many in this I3 forum.

Posted by calvintaneng > 2014-12-06 01:37 | Report Abuse

Yes Jesse Livermore is a pure gambler at his core.

He doesn't even know the business behind the share neither is he concerned.

Price movement is all that matters

After the onset of the Great Depression the rules of trading has been changed. He couldn't adapt and lost his entire furtune then commited suicide

Posted by quietspot > 2014-12-06 22:22 | Report Abuse

Calvin, can you please elaborate more. Your advices provide knowledges for anyone looking to succeed.

Posted by calvintaneng > 2014-12-06 22:59 | Report Abuse

Quietspot

I first read this interesting book on Jesse Livermore titled Reminiscences of a Stock Operator in year 2006.

I think this is by far the best book on stock speculation. He knows how to read conditions and see ahead of events that will affect shares and commodities performance. He was very accurate as to the Great Depression and he short the Dow when it crashed in October 29th 1929. When others went bankrupt he made millions.

However, he lived in a time before Ben Graham came out with THE INTELLIGENT INVESTOR. This book might have saved his life if he took heed to its writings.

Since Livermore lived and breathed by speculation winning millions has no meaning for him. The gambling addiction is as strong as drug addiction and can hardly be controlled. When Jesus died on the cross the Roman soldiers gambled right before Jesus.

So when Wall Street changed the rules of speculation after during the Great Depression. With little cash outlay people can use margin to play the stock market. Jesse Livermore was unable to adapt to the changed rules and then eventually he lost his fortune. He later committed suicide in a seedy hotel.

There is a Vast Difference Between Investment & Speculation; although in Investment there is a calculated risk like speculation. Yet there is a distinctive difference between investing and gambling.

In Investing there is set rules in favour of the investor. In gambling there is also set rules - rules against the gambler. How come?

When a person gambles he placed a bet on 36 numbers. A dollar bet on 36 numbers at random by chance or luck.

If he strikes the pay out is 30 dollars - 1 is to 30. The rules are against the gambler as can be calculated like this

If he bets all 36 numbers he is guaranteed to strike. So he bets 36 dollars and he can only win 30 dollars.

30 divided by 36 = 83.3%. So he has lost 16.7% on the first round in the law of probability. And every round he gambles he is subjected to a disadvantage position of losing another 16.7% until he finally loses all.

Of course he might be in luck once a while and might strike jackpot. But over a long long period in gambling the law of probability will eventually bankrupt him.

By this same law 80% who gambles in the stock market is bound to lose money. There is a perpetual draining brokers' fees by incessant buying and selling. Only Casino & Stock Brokering Firms make money.

In Investment the set rules favouring the investor. How?

Go and read & digest these books

1) THE INTELLIGENT INVESTOR - By Benjamin Graham

2) ONE UP ON WALL STREET - Peter Lynch

3) BEATING THE STREET - Peter Lynch

4) All Books on Warren Buffet

Regards,

Calvin Singapore

Posted by determinant > 2014-12-06 23:13 | Report Abuse

Thanks, Calvin.
I learnt a lot from your recommendations.

Posted by Kevin Wong > 2014-12-07 10:58 | Report Abuse

Many 'eclectic' investors adopt many of Livermore's methods in stock picking/selling - as much of his market principles are still relevant even today. Nowadays, almost all billionaire mart players, are investors, and most of 'em practices the value investing.

Posted by kcchongnz > 2014-12-07 11:04 | Report Abuse

Posted by Kevin Wong > Dec 7, 2014 10:58 AM | Report Abuse

Many 'eclectic' investors adopt many of Livermore's methods in stock picking/selling - as much of his market principles are still relevant even today. Nowadays, almost all billionaire mart players, are investors, and most of 'em practices the value investing.


Well said Kevin

Posted by Kevin Wong > 2014-12-07 15:29 | Report Abuse

Livermore's many downfalls are mainly due to his multiple personal problems and departing from his own set of speculating principles. But i believe even if Buffett were to be beset the same kind of personal challenges and 'misadventures' as JL's had, Buffett wouldn't go bust, not even once! That's why i choose investing.